Question

What happens in the putting-out system?
(A) Merchant supplies the raw material
(B) Receives the finished product
(C) Both A and B
(D) None of these

Answer 1

Hint: The putting-out system is a former process of buying and selling goods produced at the household level. It is furthermore realized as the cottage industry and usually, the whole family of the weaver supports in the procedure.

Complete answer:
The treaty between the merchant and the weavers is an illustration of a putting-out procedure, whereby the merchant stocks the raw material and obtains the complete commodity. The merchants acquire the raw material and provide instructions to the weavers about the manner of cloth that is to be prepared. This pact is dominant in the weaving enterprise in maximum provinces of India.
The putting-out network implicates two groups - the weaver and the merchant. There are several benefits and drawbacks of this system to the weavers. Let us first glance at the Advantages
The weavers are provided with a pre-determined measure of the sort of cloth they desire to create and also the amount that desires to be woven. In this way, a bunch of extra labor is recouped.
The weavers are stocked with the thread so the money to be paid on buying the raw material is conserved.
The weavers also conserve the price of transportation and the sales-related cost of the finished commodities.
The workers can help at their degree, and the family members can give a helping hand to attain the workload. The system has its disadvantages for the weavers.
The weavers are frequently manipulated and are paid badly for the work done.
The merchants carry a ton of power as the weavers are pendant upon them for raw materials.
The weavers are not familiar with their rights and do not know the substantial value of their work.

Thus, option (C) is correct.

Note: Putting out the system was also known as the household system. In this system, the weavers' subcontract labor from the merchant. This strategy was a prototype of the Industrial Revolution in Europe.